Vaalco Energy, Inc. reported net income of $8.4 mn in the second quarter of 2025, or $0.08 per diluted share, up from $7.7 mn in the previous quarter but sharply down from the $28.2 mn recorded a year earlier. Revenue from oil, gas and natural gas liquids sales reached $96.9 mn, down 12% quarter-on-quarter and 17% year-on-year, mainly due to lower average realised prices at $54.87 per barrel of oil equivalent compared with $64.27 in the first quarter.
Net production, after royalties, amounted to 16,956 barrels of oil equivalent per day (boe/d), exceeding the upper end of guidance. Net sales reached 19,393 boe/d, also above estimates. Adjusted EBITDAX stood at $49.9 mn, down 12% from the previous quarter and 31% year-on-year.
Projects in Africa and Canada
In Africa, Vaalco is advancing work on several fronts. In Gabon, a 2025/2026 drilling programme is set to begin at the end of the third quarter, with development wells and maintenance operations targeting the Ebouri field. In Côte d’Ivoire, refurbishment of the Baobab production vessel is underway in Dubai, ahead of a 2026 drilling campaign. In Egypt, six wells were completed in the second quarter, with hydraulic fracturing operations planned for the third quarter.
In Canada, the company has deferred new drilling to 2026 to reduce capital expenditure, after bringing five horizontal wells into production in 2024.
Financial position and outlook
As of June 30, 2025, Vaalco reported unrestricted cash of $67.9 mn and debt of $60 mn tied to a new reserves-based credit facility with an initial commitment of $190 mn. Net capital expenditures for the quarter totalled $45.9 mn, mainly for projects in Gabon, Egypt and Côte d’Ivoire.
The board of directors approved a quarterly dividend of $0.0625 per share, payable on September 19. The company maintained its full-year guidance, with net production expected between 14,500 and 16,710 boe/d and capital expenditure projected between $250 mn and $300 mn.
